Have You Received a Letter from PRA Group? Here’s What It Means

If you’ve been contacted by PRA Group about an unpaid debt, you might be wondering what happens if you ignore it. Will they send bailiffs? Can they take legal action? Will your credit score be affected?

Ignoring a debt collection agency like PRA Group can have serious consequences. Whether or not you owe the money, understanding your rights and options is essential. In this article, we’ll explain who PRA Group is, how they operate, and what could happen if you fail to respond.

Who Is PRA Group, and Why Are They Contacting You?

PRA Group UK Limited is a debt collection agency that purchases unpaid debts from banks, credit card companies, and other lenders. Once they buy a debt, they attempt to recover the full amount from the debtor.

If you’ve received a letter or phone call from PRA Group, it means they have acquired your debt from your original creditor. This could be from a bank, loan provider, or credit card company that has sold the debt to them.

Are They a Legitimate Debt Collection Agency?

Yes, PRA Group is a regulated debt collection agency. They are authorised by the Financial Conduct Authority (FCA), which means they must follow strict rules, including:

• Treating you fairly and clearly explaining your options.
• Not harassing or threatening you.
• Not sending bailiffs unless a court order has been obtained.
• Only contacting you during reasonable hours.

If PRA Group is contacting you, they are legally allowed to do so, but you also have rights to protect yourself.

What Happens If You Ignore PRA Group?

Ignoring PRA Group will not make the debt disappear. Here’s what could happen if you fail to respond:

1. Increased Contact Attempts

PRA Group will initially send letters and call you. If you ignore them, they may increase the frequency of contact.

2. They May Apply for a County Court Judgment (CCJ)

If you continue to ignore PRA Group, they may escalate the matter by applying for a County Court Judgment (CCJ). A CCJ is a court order requiring you to repay the debt within a set timeframe.

A CCJ can have serious consequences, including:

• Staying on your credit file for six years, making it harder to get credit.
• Affecting your ability to rent a home, get a mortgage, or even secure certain jobs.
• Potential court enforcement actions if ignored.

If you receive a CCJ, seek professional debt advice immediately to understand your options.

3. Bailiffs Could Be Instructed

PRA Group itself cannot send bailiffs, but if a CCJ is issued and ignored, they can apply for further legal action. This could result in:

• Bailiffs being sent to your home to recover the debt.
• Potential wage deductions through an attachment of earnings order.
• A charging order being placed on your property.

However, bailiffs cannot force entry into your home unless collecting unpaid criminal fines, tax debts, or specific court-ordered penalties. If enforcement action is being taken, it’s vital to get immediate debt advice.

4. Your Credit Score Will Be Affected

Missed payments, defaults, and CCJs all remain on your credit report for six years. This can make it more difficult to:

• Get approved for loans, credit cards, or mortgages.
• Rent a property, as landlords often check credit reports.
• Secure employment in certain financial roles.

If you’re struggling with debt, seeking professional help can provide options for managing repayments.

What If the Debt Is Over Six Years Old?

In England and Wales, debts can become ‘statute-barred’ if:

• Six years have passed since the last payment or written acknowledgement of the debt.
• The creditor has not taken court action during this time.

If a debt is statute-barred, PRA Group cannot legally enforce payment through the courts. However, they may still attempt to recover the money voluntarily. If you believe a debt is statute-barred, seek professional advice before responding.

Should You Set Up a Payment Plan with PRA Group?

Your approach will depend on your financial situation. Here are your options:

If You Can Afford to Pay

Settling the debt can prevent further legal action. PRA Group accepts payments via:

• Their website.
• Phone (0808 196 5550).
• Cheque sent to their business address.

If You Cannot Afford to Pay

There are several debt solutions available in the UK:

Individual Voluntary Arrangement (IVA)

• Consolidates multiple debts into one monthly payment.
• Lasts five to six years.
• Any remaining debt is written off at the end.
• Suitable for debts of £6,000 or more.

Debt Relief Order (DRO)

• Designed for people with low disposable income.
• Freezes debts for 12 months.
• If your situation does not improve, the debt is written off.
• Available for debts under £30,000 (England & Wales) or £20,000 (Northern Ireland).

If you are unsure which option is right for you, speak to a debt adviser before agreeing to a payment plan with PRA Group.

How to Protect Yourself from Debt Collectors

Dealing with debt collectors can be stressful, but you have rights. Here’s how to protect yourself:

1. Request Proof of Debt

PRA Group must provide proof that the debt belongs to you before requesting payment. Ask for:

• A full breakdown of the debt.
• A copy of the original credit agreement.

2. Know Your Rights

PRA Group must follow FCA regulations, which means they:

• Cannot harass you or use aggressive tactics.
• Cannot threaten legal action they do not intend to take.
• Must respect requests to communicate in a way that suits you (e.g., letters only).

3. Seek Professional Debt Advice

If you’re struggling, charities like StepChange Debt Charity and National Debtline offer free, confidential advice.

How to Stop PRA Group from Contacting You

PRA Group is legally allowed to contact you, but you can:

• Request all communication in writing to avoid phone calls.
• Inform them if you are working with a debt adviser so they contact them instead.

If PRA Group continues to contact you inappropriately, you can report them to the Financial Ombudsman Service.

Getting Help with PRA Group Debt

If PRA Group is pursuing you for payment and you’re unsure what to do next, professional debt advice is the best course of action. Speaking to a debt specialist can help you:

• Understand your legal position.
• Explore debt solutions suited to your situation.
• Negotiate with creditors on your behalf.

Final Thoughts

Receiving a letter from PRA Group can be unsettling, but ignoring it will only make things worse. The most important steps you can take are:

• Confirm whether the debt is valid before making any payments.
• Understand your rights and ensure PRA Group follows FCA regulations.
• Explore debt solutions if you cannot afford to repay.
• Seek professional advice to regain control of your financial situation.

If you need help dealing with PRA Group, speak to a debt specialist today and take control of your financial future.